Gold soared to a new record high on Friday following a weaker-than-expected U.S. jobs report, strengthening expectations that the Federal Reserve may cut interest rates later this month.
The precious metal jumped as much as 1.5%, surpassing $3,600 an ounce for the first time, extending a sharp rally this week driven by growing bets on monetary easing. The surge followed a key U.S. payroll report that revealed slowing job growth and a rise in unemployment to its highest level since 2021.
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Falling interest rates typically enhance the appeal of gold, which doesn’t offer a yield. The metal has also benefited from strong safe-haven demand amid rising uncertainty around the Fed’s future policy path.
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Both gold and silver have more than doubled in value over the past three years. Geopolitical tensions, economic instability, and disruptions in global trade have all fueled investor demand for safe assets. Further concerns have been stirred by former President Donald Trump’s escalating criticism of the Fed. Trump has pledged to secure a majority influence on the central bank and push for lower interest rates.
Markets are also closely watching a pending court ruling on whether Trump has grounds to dismiss Fed Governor Lisa Cook — a move that could allow him to install a more dovish policymaker. In a note this week, Goldman Sachs analysts said gold prices could climb to nearly $5,000 an ounce if concerns over Fed independence escalate and investors begin reallocating assets from Treasuries into bullion.
As of 1:07 p.m. in New York, spot gold was trading up 1.3% at $3,592.50 an ounce, positioning it for a 4.2% weekly gain — its strongest performance since late May.
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